Rumors abound, is the exorbitant listing fee of Binance true or false?

Author: shaofaye123, Foresight News

The listing fees of exchanges have always been a focal point of industry attention, and discussions about whether there are indeed exorbitant listing fees are not new. In 2018, Binance was questioned for requiring a $1 million listing fee for tokens. Other exchanges also became embroiled in the topic, with claims of 10 ETH, 20 BTC, and 500,000 Tokens, making it difficult to discern the truth. Binance also announced in October 2018 that it would make listing fees transparent and donate them to charity. In 2022, due to the MITH deposit refund incident, Binance's listing fees once again fell into the whirlpool of public opinion. Recently, with the CEO of Moonrock Capital exposing a $100 million listing fee on Twitter, rumors and outcries regarding Binance's exorbitant listing fees have once again become the center of discussion.

Timeline of Events

On November 1, the CEO of Moonrock Capital, a native consulting and investment firm in cryptocurrency, spoke out on Twitter. He claimed that Binance required a potential project to provide 15% of its total token supply to ensure its listing on the centralized exchange, which amounted to approximately $50 million to $100 million.

The incident then began to gain traction, with the post receiving over a million views and more KOLs starting to participate in the outcry or support.

Brian Armstrong, co-founder of Coinbase, also issued a statement regarding the matter, claiming, "Coinbase's listing is free."

However, Coinbase, which intended to showcase the spirit of decentralization and fairness, was quickly exposed for not only charging listing fees but also for the substantial amounts involved.

Andre Cronje, co-founder of Sonic Labs, claimed on Twitter, "Binance does not charge listing fees, but Coinbase has repeatedly requested fees, quoting $300 million, $50 million, and $30 million, with the most recent quote being $60 million." This response sparked widespread discussion, and the incident escalated. Some questioned whether Andre might have contacted fake Coinbase listing workers, while Andre stated he could provide all evidence for public verification. "I have not signed a confidentiality agreement, so I am very willing to provide relevant proof (the quotes came from multiple employees/departments of Coinbase over the years through emails, Telegram, and Slack). Coinbase can argue that this is not a listing fee but an earn fee, but it still translates into the project's listing cost."

He Yi's Response

With the discussion heating up, Binance co-founder He Yi also provided a response, claiming that there is no so-called listing fee, and that the airdrop ratios and rules for cooperation with project parties are clear and transparent, and will not be determined by whether the project party provides tokens. Additionally, Binance has a strict listing screening mechanism.

He Yi stated on Twitter:

• FUD: If a project does not pass the screening process, no matter how much money or what percentage of tokens are offered, it cannot be listed on Binance.
• DYOR: Projects already listed on Binance have clear introductions in the token distribution section; please analyze the percentages yourself to see if there is really a so-called 20% or 15%.
• Airdrop: The airdrop rules for Binance's launchpool and other listings are transparent and clear, but this does not mean that projects willing to provide airdrops can list on Binance. If you have 20% of tokens and want to cooperate with Binance for an airdrop, you are welcome to collaborate with our web3 wallet.

FUD will never disappear, but it makes us stronger. Gossip easily attracts traffic, and business competition is always filled with dark sides; once you understand the rules of how this world operates, you will no longer be easily swayed by rumors, thus gaining the ability to think independently.

People like AC, who dare to speak the truth amid the noise, are the ones truly deserving of respect in the community.

As for listing fees, KOLs and the public have differing opinions. Some believe that listing fees are part of the operational costs of exchanges and can serve as a way to filter project quality. Others argue that listing fees may hinder some promising but underfunded projects from going public, thus affecting market diversity and competitiveness.

Industry Development Through Listing Fees

In 2018, 2022, and now 2024, it seems that the controversy over listing fees is raised every few years. Cryptocurrency is centered around the spirit of decentralization, yet the listing fees of centralized exchanges remain shrouded in mystery. From a business perspective, it may be reasonable for exchanges to charge certain listing fees, as they need to invest resources to evaluate projects, ensure compliance, and maintain platform operations. However, the collection of fees should be transparent and fair, and excessively high fees should be avoided to prevent them from becoming barriers to innovation.

The ongoing controversy over listing fees reflects a strong demand from practitioners for transparency and fairness. Binance's proactive response has alleviated market concerns to some extent, highlighting the necessity for exchanges to be more transparent and fair in their listing policies. However, the development of the industry should not be limited to listing fees; project parties should focus more on the quality and sustainability of their projects. Each phase of attention to listing fees represents a demand for a fairer and more transparent market environment. This often signifies the emergence of new turning points, where truly valuable projects need to stand out.